Glass items except toughened glass output continued to show decreasing trend from last few months due to fall in demand. However, Recent Budget provisions are likely to promote home ownership and give a fillip to a number of industries including glass. Further, growth in Float Glass segment is expected to pick up once the interest rates start softening leading to increasing demand for real estate. Thus, buoyed by increased demand from housing and infrastructure sectors, India's glass consumption is likely to expand further in FY2013-14. Finally, players who have taken initiatives for new product line as well for cost controls will benefit with relatively better margins.

Glass consumption growth is expected to increase in all the major sectors such as consumer goods, pharmaceuticals, automotive and construction driven by uptick in demand. The lower per capita consumption of 1.5 kg in India as compared to the other countries and the strong economic drivers for end user segments (liquor, beer, pharma, food, cosmetics etc) will boost the demand for the industry.

Primal Glass that manufactures glass containers for the Pharmaceuticals, Cosmetics & Perfumery (C&P) and Specialty Food & Beverage (F&B) industry, for FY14, expects sales growth of around 15% with EBIDTA at same level of FY2013.

Company's subsidiary in Sri Lanka, Piramal Glass Ceylon PLC has on April 26, 2013 agreed to sell part of its Land at Rathlamalana for a consideration of Sri Lankan Rupees 355 million (equivalent to INR 151.69 million approximately). The final sale transaction is likely to be completed on or before June 30, 2013.

Asahi India Glass (AIS), India's largest integrated glass company, manufactures a wide range of safety glass, float glass, architectural processed glass and glass products. Recently, it has informed that it has received an amount aggregating to Rs. 50 crore from Asahi Glass Japan (one of the promoters of the Company) as advance share application money towards its entitlement under the proposed right issue of the Company. AIS Auto Glass has recently taken fresh initiatives to remove some bottlenecks and raise its capacity. The same is aimed at bringing down the overhead and freight costs. The ensuing expansion involves enhancement of direct production and supporting equipment. Total project outlay, is estimated to be around Rs.125 crore. AIS Float Glass commands 25% share in the Float Glass market. AIS expects that the growth in Float Glass segment is expected to pick up once the interest rates start softening leading to increasing demand for real estate.

Hindustan National Glass (HNG) in order to optimize the cost, is implementing various processes and systems across the manufacturing units. The company is sourcing power through IEX, and it has entered into long term tie ups with mine owners for captive processing and supply of silica sand. Therefore, company expects the margins to improve as the initiatives start yielding cost benefits in the coming quarters. Further, company is in plans to expand to 5,015 TPD by 2015 from existing 4,235 TPD of capacity (including Naidupeta). HNG expects its overall operations to break even in FY2013. Hence, from the extended capacities and increased capacity utilizations, management expects the production and sales volumes to improve significantly.

Glass packaging industry in India was under pressure in FY2013, with capacity being added by about 25% YoY with not much increase in demand to absorb the supply. As per Piramal Glass, two of the top glass manufacturing companies in Indi are financially bleeding. Globally, there was a clear slowdown in Pharma packaging market and the slowdown was not only in US and EU, but was visible in countries like Turkey, Russia, Latin America and Brazil etc.